(News Bulletin 247) – Bank of America on Wednesday renewed its recommendation to buy ArcelorMittal stock, which it still has a target price of 31 euros.
In a research note, the financial intermediary examines the joint ventures and other affiliated companies held by the steelmaker, investments that he values around 10.8 billion dollars.
From his point of view, this element is ‘material’ insofar as it represents more than 40% of the market capitalization of the group, which reaches 26.6 billion euros.
These entities include, among others, AMNS India, which according to BofA has a certain growth potential, but also Calvert, an American supplier of quality steel intended for the automotive sector.
According to the analyst, the valuation of ArcelorMittal is not fairly rewarded for these participations, the market basing itself on the ratio Enterprise value / Ebitda to evaluate the company, while the Ebitda of the group does not consolidate joint ventures and affiliates.
Copyright (c) 2023 News Bulletin 247. All rights reserved.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
